In September 2024, the US Treasury imposed sanctions on LYP Group and O-Smach Resort, alongside Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by LYP Group, over alleged abuses relating to trafficked migrant workers, who have been subjected to forced labour in online scam centres. It describes repeated rescue missions, including in October 2022 and March 2024.

On 5 January 2025, 57 foreign workers, mostly Nepalis and Pakistanis, were rescued from O’Smach Resort, where they allegedly worked for a Chinese employer in the compound. LYP Group is reported to be the owner of O’Smach Resort, which has reportedly been connected to online scam operations and labour trafficking.

Oddar Meanchey Provincial Police also issued a statement noting that the migrant workers were reportedly hired to work by another company for a few months in Preah Sihanouk Province, and they did not receive payment before being transferred to O’Smach Resort.